The Impact Of Public Procurement Law To The System Of Public Finance
Public procurement law lays out the processes and procedures that public agencies, authorities, or departments should follow when procuring work or service using public funds. The law stipulates the threshold at which public entities should use public procurement instead of private procurement. Ef...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University
2019-06-01
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| Series: | Global Economic Observer |
| Subjects: | |
| Online Access: | http://www.globeco.ro/wp-content/uploads/vol/split/vol_7_no_1/geo_2019_vol7_no1_art_015.pdf |
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| Summary: | Public procurement law lays out the processes and procedures that public agencies, authorities, or
departments should follow when procuring work or service using public funds. The law stipulates the threshold
at which public entities should use public procurement instead of private procurement. Effectively, public
agencies spend a considerable amount of government revenue on public services. However, controversy exists
on the relationship between government spending and private sector investment. It also remains unclear as to
whether public procurement law improves financial management. Thus, the purpose of this study is to
determine the relationship between public procurement law and the crowding-out effect, taxes, and finance.
The study relies on quantitative research design where data was collected from a sample of 130 participants
who comprised of public procurement officials, private investors, and the public. Using a questionnaire, the
findings showed that public procurement law increases government spending that in turn crowds out the
private sector instead of crowding-in. The need to fund projects often compels government to increase taxes
and in turn incur budget deficits due to lack of adequate finances. However, public procurement laws enhance
financial planning and control |
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| ISSN: | 2343-9742 2343-9750 |